Learn why your ₹1000 loses value over time due to inflation, and how to protect it through smart investments like chit funds. Beginner-friendly money tips by myPaisaa.
We all use money every single day. But how many of us actually understand what money is? And why does it feel like our money doesn’t go as far as it used to?
In this blog, we break it down in a way that’s super simple and relatable. You’ll learn:
Money is just a tool we use to exchange value.
Long ago, people used the barter system—trading wheat for milk, or rice for cloth. It was difficult to manage. That’s why money was invented as a standard form to make buying and selling easier.
Today, whether it’s cash, UPI, or bank transfers, money helps us:
This is because of inflation.
Inflation means that prices go up over time. That means the value of your money goes down.
Let’s say:
That’s inflation. It eats into your purchasing power quietly, year after year.
Most people think putting money in a savings account is enough.
But here’s the reality:
| Bank Interest | Inflation | Real Growth |
|---|---|---|
| 3–4% | 6–7% | Negative |
Even though your money looks safe in a bank, it’s actually losing value when you account for rising prices.
Here are 3 smart moves:
Look beyond savings accounts. Chit funds (like myPaisaa), SIPs, gold, or mutual funds help your money grow faster than inflation.
Track inflation: Use sites like RBI or Statista to see inflation trends.
Invest smartly: Mutual funds, chit funds, gold, or SIPs can help your money grow.
Review annually: Update your savings/investments every year to keep up with changing times.
Here’s a quick table showing what happens to ₹1000 if:
| Year | Just Saved (₹) | Invested @8% (₹) | Value after 6% inflation |
|---|---|---|---|
| 2025 | 1000 | 1000 | 1000 |
| 2026 | 1000 | 1080 | 943 |
| 2027 | 1000 | 1166 | 890 |
| 2028 | 1000 | 1259 | 839 |
As you can see, saving alone won’t help. Investing is the only way to stay ahead.
If you’re new to investing, chit funds are a great starting point. With myPaisaa:
Money loses value over time.
If you don’t grow it, you lose it.
Start small, start now.
Whether you’re a student, salaried employee, or small business owner—your money deserves better than sitting idle in savings.
Q1: Is keeping money in savings bad?
No, but relying only on savings won’t grow your wealth. You need to invest too.
Q2: What’s the best way to beat inflation in India?
Start with chit funds, mutual funds, or SIPs. Even gold or PPF is better than just saving.
Q3: How often should I check my money plan?
Review your savings and investments at least once a year. Adjust based on life goals and inflation.
Q4: Can I start with small amounts?
Absolutely! With myPaisaa chit funds, you can start from just ₹4000/month.
At myPaisaa, we believe everyone—no matter where they live or how much they earn—should understand and grow their money.
If you’ve ever wondered “Where is all my money going?”, this is your wake-up call. Don’t just save. Grow.
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